Joe’s Crab Shack Files For Bankruptcy

The owner of Joe’s Crab Shack, the beach-themed, seafood restaurant chain, filed for Chapter 11 bankruptcy earlier this week, according to a statement from the company.

The chain’s owner, Ignite Restaurant Inc. — which also owns the Brick House Tavern + Tap chain — plans to sell the company for at least $50 million to a private equity firm, according to a report by CNBC.com.

Ignite had been seeking to sell the business last year, but as sales continued to worsen into early this year, potential buyers pulled their proposals, leading Ignite to consider filing Chapter 11 bankruptcy, the report said, citing court filings by the company.

“Today’s sale agreement represents the culmination of a long and thorough process, and is an important step in positioning Joe’s and Brick House for future growth and success,” acting CEO Jonathan Tibus said in the statement.

Ignite has filed a proposal to sell its assets to the private equity firm, Kelly Investment Group.

Joe’s Crab Shack, Brick House restaurants reportedly for sale
Joe’s Crab Shack, Brick House restaurants reportedly for sale
The fate of the restaurants is unclear and owner Ignite Restaurant Group said it may seek bankruptcy protection

Michael Kelly, CEO of KRG Acquisitions Co. — an affiliate of Kelly Investment Group — said in a statement that he is “excited about acquiring a well-known national brand such as Joe’s Crab Shack and Brick House Tavern + Tap.”

Ignite said in its statement that both Joe’s Crab Shack and Brick House Tavern + Tap restaurants will remain “open and operating as usual and Ignite customers can expect to continue to enjoy the same great food and service that they have come to expect from our brands.”